2026 Wave 3
The Principal Financial Well-Being Index is our comprehensive quarterly study of the financial health of U.S. employers. The index score factors in business health, growth, and optimism based on economic outlook. Our research draws insights from business owners, key decision makers, and executive leaders across organizations ranging from small businesses to large enterprises (2–10,000 employees) that offer employee benefits and retirement plans.
Businesses are increasingly optimistic about the economy, with confidence in both U.S. and local economic growth returning to pre-tariff-announcement levels (November 2024). Confidence in their own financial growth is stabilizing, but has not yet fully recovered to levels seen in 2023 and 2024.
Businesses continue to grow their workforce at a steady pace, in line with broader labor market trends. That confidence extends to their outlook on AI: Most expect adoption to support stable or growing staffing levels and wages, with sentiment even stronger than it was when asked in October 2025.
“Much of the public conversation around AI has focused on potential job losses, but employers are telling a more nuanced story. We're seeing broadening AI adoption alongside relatively stable staffing levels and continued investment in talent. That aligns with what we're hearing from employers across our client base, where the focus is less on workforce reduction and more on using AI to increase productivity, support employees, and help drive business growth.”
Amy Friedrich
President, Benefits and Protection, Principal®
Sixty-nine percent of businesses agree they're seeing an increase in employees delaying retirement because of financial security concerns, with cost of living, savings, and healthcare topping the list.
Changing workforce needs and labor market conditions are prompting employers to take a more targeted approach to retaining experienced workers, rather than relying on formal phased retirement programs.
“Retirement looks different for every person, but the need for confidence is consistent. At a time when economic uncertainty is weighing on many households, people want to know whether they’re on track and what steps they can take next. A strong retirement plan can help by pairing savings with guidance and income strategies that support employees across income levels and help them move toward retirement with greater confidence.”
Teresa Hassara
SVP, Workplace Savings and Retirement Solutions, Principal®
The Principal Financial Well-Being Index℠ (WBI) Wave 3 (June 22–July 13, 2026) is recurring research used to track sentiment around repeated financial health measures and timely issues relevant to businesses.
Business owner, decision maker, and leader participants who represent companies with 2–10,000 employees (n=1,000) provide information by completing a 15-minute online survey. Access to sample is provided by ROI Rocket, a third-party research panel provider.
In 2025, the WBI added a formal index. The index number in the WBI is calculated by taking responses from six perceptual measures evaluating current financial health, financial comparisons year over year, and projections for business and economic outlook. The percentages of respondents who answered positively for each measure are averaged and standardized to a 0–10 scale, with perceptions of business/company, local economic, and U.S. economic growth weighted 60%, 20%, and 20% respectively within their aggregate measure.
Small businesses = 2–499 employees, Large businesses = 500–10,000 employees
